A Global Franchise Marketplace
Albeit cliché, the idea of a global village and the world’s size decreasing relative to interconnectedness carries a significant degree of merit. Brand growth has been expedited exponentially due to the byproducts of globalization, namely instantaneous communication and the sheer speed of support as well as the general ease of the entire process. Conversely, however, the demolition of technological barriers has only given rise to various cultural and numerous legal barriers that carry severe consequences for international franchising.
International expansion is often optimal in the long-run, yet the prerequisite to successful international franchising is a strong foundation cultivated overtime prior to incredible growth. The decision to expand overseas should be the product of careful consideration.
Bringing Franchises to America
For those wishing to penetrate the American corporate veil, a two-pronged approach of realistic expectations as well as ambition is necessary. Franchising in the United States is regulated two-dimensionally: at the national level by the Federal Trade Commission as well as at the state level by respective state laws.
A plethora of states obligate the registration of a franchise as a prerequisite to the sale of franchises in the aforementioned state. In order to satisfy the various governmental oversight bodies, a concrete foundation of legal documentation such as the franchise disclosure agreement, franchise agreement, and federal trademarks is necessary prior to the solicitation of franchisees. For more information regarding international franchising or general franchise law questions, check out our blog or schedule a consultation with one of our attorneys.
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